Professional Liability insurance covers your accounting business if you’re sued for performing professional services, even if you haven’t done anything wrong. Get a quote and buy online in under five minutes. Professional Liability insurance for accountants starting as low as $18.15/month with Apollo Insurance.
Accountants offer a valuable professional service to their clients, who place a great deal of trust in them. That’s why insurance is a crucial part of any accountant’s business.
No matter how much experience an accountant may have in the industry, there is still a possibility that they will be hit with an expensive lawsuit. Mistakes happen, or an irate client might sue their accountant because of a perceived problem. Whether the lawsuit is justified or not, most small businesses would not be able to financially withstand a lawsuit. A professional liability insurance policy is designed to absorb those costs so that your accounting company does not have to.
That’s why insurance for accountants is a smart business decision. Not only do you get the peace of mind that comes with knowing you will not be financially liable in the event of a lawsuit, you are securing the future of your business, personal assets, and professional career.
Why do accountants need insurance?
Accountants are given access to sensitive information and play an important role in advising their clients of potential opportunities or pitfalls of financial management. By giving any kind of professional advice brings risk requiring insurance.
Larger, more sophisticated companies often request proof of general liability and professional liability insurance from contracts, meaning that insurance is often mandatory for accountants to work with these types of businesses.
Accountants can be sued when one of their clients or a shareholder incurs financial loss, regardless of fault. It can be very costly for an accountant to defend this type of lawsuit, especially at a small firm or solopreneur company. To ensure this type of risk isn’t detrimental, a proper insurance policy is key for the planning and operation of any business.
What kind of insurance does an accountant need?
As an accountant you provide a valuable service to your clients and you need insurance to cover your business against various professional risks. Preparing corporate tax and consequences of inaccurate financials can lead to lawsuits. Apollo offers a customized small business insurance package tailored to fit your accounting business insurance needs.
What types of risks does my small business face as an accountant?
As an accountant you are providing a technical service, advice, and council to your clients. Sometimes there is an alleged error or omission in the work you perform which can lead to a lawsuit. Accountants manage very sensitive information and business processes for your clients. A lawsuit, regardless of fault, can be costly to defend.
If your accounting business has an office or leased premises you are also exposed to the risk of slips and falls on site when your client visits. If there is a fire, flood, burst pipe or other peril it can damage your office equipment, furnishings, and cause your accounting business to incur additional expenses to relocate while the damage is being fixed.
A lawsuit, regardless of
fault, can be costly to
Additionally, in the digital age we live in today the collection and storage of client information leads to cyber risks such as personal or confidential data being exposed by accident or by hacking. Accountants are provided with lots of client files and access which can be breached either accidentally or through other malicious software. With new regulations and expectations for small businesses to protect client data, it is important for accountants to address these risks.
What does Professional Liability insurance cover for an accountant?
Professional liability insurance, also called errors and omissions insurance for accountants, responds to lawsuits to pay for legal fees, settlement or court award if you are sued for allegations of negligence, an error or omission causing financial loss.
What does Contents insurance cover for an accountant?
Contents insurance for an accountant covers the physical things your business owns, like computers, furnishings, office tenant improvements, or costs associated with relocating in the event of fire, water damage, flood, theft, or other perils including in the policy. These are covered on a replacement cost basis, meaning if they are totally destroyed the insurance policy pays for a similar item new. It is important to have a high enough contents limit to replace everything in your business.
What does cyber liability insurance cover for an accountant?
Cyber liability insurance for accountants can cover a variety of risks depending on the specific policy chosen. Generally it will cover professional fees to discover the nature of the loss, be it a hacker or another breach, and can also in some cases include notification expenses to formally notify all individuals whose data was compromised. Cyber liability is a growing and complex new area of insurance for accountants.
How is insurance priced for accountants?
The cost of your insurance for an accounting business depends on many factors which are addressed in the online quote process. These can include revenue, limits of insurance selected, deductible selected, size of your accounting business and claims history. See how much it costs in just a few minutes by getting a quote from our online platform for accounting businesses today.